Do you get home from work just in time for a second shift at your home business? Do you rely on income outside of your job to make ends meet? If so, you're part of a growing trend in which people with all kinds of experience and qualifications work a side hustle in addition to their primary source of employment.
A side hustle is work done to provide an additional source of income for people who already have jobs. It’s not exactly a part-time job since the hours can stack up between evenings, weekends, and other spare hours. When it comes to running a side hustle, at least at first, you’re likely not an employee either. In most situations, you’ll be classified as an independent contractor, so you’ll have to track, report, and pay taxes on your income to the IRS separately.
Side hustles have become increasingly common. 39% of working Americans report having a side hustle. That amounts to as many as 80 million people. Among millennials, that statistic rises to 50%, and 70% of Gen Z reported looking for a side hustle.1
Why are so many people making money on the side? Here are 10 reasons side hustles are becoming popular ways to extend income.
Gig work got a big boost in 2020 due to global financial instability caused by the COVID-19 pandemic. As economic growth turned negative and unemployment soared, many people sought additional income streams as a form of financial security.
The growth of online platforms and mobile apps made it easier than ever to find opportunities for part-time work or freelance gigs. Services like Uber, Airbnb, Upwork, and TaskRabbit allowed people to monetize their skills and assets, leading to the rise of the gig economy.
The COVID-19 lockdown forced millions to work from home, making it simpler to balance their primary jobs with side hustles. Without the daily commute, many people found they could fit in extra work more easily outside of normal business hours. Increases in accessibility for remote work also made it easier for people to connect with more prospective customers on a wider geographic basis.
Many individuals have become attracted to the ideas of entrepreneurship and self-employment. The internet provided a vast marketplace for selling products and services, and many people embraced the opportunity to start small businesses alongside their regular jobs.
The COVID-19 pandemic blurred the lines between work and family life, forcing many employees to re-evaluate their priorities around work, kids, and personal fulfillment. Side hustles offered an outlet for pursuing personal interests and passions, potentially leading to more rewarding and balanced lives.
Not surprisingly, most people with side hustles do it for the money. Many people also turn to side hustles to achieve specific financial goals such as paying off debt, saving for a down payment on a house, funding travel and experiences, or simply to support their hobbies.
Running a side hustle can require skills you might not need in your regular job. You’ll need to market yourself, budget resources, plan projects, and manage accounts and receivables. That’s one reason many people see side hustles as a way to gain new skills and experience, which could improve their career prospects or help them transition to a new field.
Pursuing a side hustle isn’t as lonely as it used to be before social media platforms and online communities played a significant role in promoting and connecting individuals. Now people with side hustles can share their experiences and success stories, inspiring others to explore their entrepreneurial potential. They can also expand their reach when it comes to finding customers and making their products or services more widely available.
Having a side hustle can enhance creativity, motivation, and skill development, and some companies are starting to recognize these benefits and encourage their employees to pursue outside opportunities. Many companies put restrictions on the type of work their employees are allowed to do (for instance, most forbid employees to directly compete for client work), so check with human resources before you get started.
Starting a solo business means managing money including pricing products or services, sending out invoices, tracking receivables, and figuring out tax liability. Fortunately, all that has become easier with the emergence of online financial tools such as budgeting apps and investment platforms that can help individuals manage and grow the income generated from their side hustles more effectively.
Side hustle employment grew dramatically during the 2020s due to economic factors, technological advancements, changing work dynamics, and a growing desire for personal and financial fulfillment. Side hustles have enabled many people to adapt and thrive in a rapidly changing world, earning income while they pursue their passions. Today, side hustles continue to provide people with financial resources, work-life flexibility, opportunities to enhance their skills, and the satisfaction that comes with autonomy.
1 “2026 Side Hustle Statistics and Survey Results: Income Levels, the Most Popular Gigs, and Common Struggles,” Side Hustle Nation, Accessed March 2026.
This article is provided for general informational purposes only. Neither New York Life Insurance Company, nor its agents, provides tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions.
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